So you're tired of running out of hot water in the shower and want to replace that old hot water heater. Or maybe you're considering tankless for a new project. Well, tankless hot water heaters can be a great solution to your residential hot water needs. They're also referred to as on demand hot water heaters because they don't usually store hot water, but rather create it on demand. And installing a tankless hot water heater can qualify you for a $300 federal energy tax credit!
But for all the hype surrounding these appliances there are some limitations and trade-offs to consider before you can really decide if the tankless hot water heater is for you. I have one in my house and properly used these appliances are absolutely great. Improperly used they are disappointing and expensive. They come in point-of-use and whole-house versions and there are electric tankless water heaters and natural gas or propane models. Some tankless units are sized to heat a cup of tea, others to provide enough hot water for 2 or more bathrooms. Also, the region of the country you live in has a lot to do with how much hot water a tankless water heater can produce.
There are a lot of factors to consider with these units so I'll lay out what you need to know about the tankless water heater so you can make an informed decision before you get, well, into hot water.
Article from About.com